It's amazing to think how far Volvo's image has improved of late. Remember the Eighties when they were considered to be an ideal choice if you wanted a strong estate that was the shape and size of a house but weren't bothered about image? 'Style' was not a word that was often used in the same sentence as 'Volvo'. Even as little as 10 years ago, despite some tomfoolery in the British Touring Car Championship that improved our perceptions of the brand, they were still seen as big, lumbering cars favoured only by OAPs, caravan towers and Plod due to their reliability.

And despite having made a huge stride to get where it is today - a maker of cars that are considered stylish in a quirky, Swedish kind of way and are comfortable and well built - the car company from Gothenburg is still a long way from its ultimate goal, which is to be up there rubbing shoulders with Mercedes-Benz, BMW and Audi.

But all that is about to change. You see, the new S40 (and it is totally new) finally feels like the car that will move Volvo up the final rung of the premium ladder. Not only is it built to standards set by the existing top players, it's also the first Volvo you'd want buy purely for its looks, and the first that shouts genuine quality. Even from a distance, it's clear Volvo has improved its build standards and everything looks tight and well screwed together.

Thanks to being shorter yet wider than its predecessor, the proportions are superb, from the beautifully crafted headlights that are fared into the front wing, to the gently sloping rear window, it's very graceful, sleek and modern. The profile reminds me of a Passat, but this doesn't mean Volvo has simply cloned a German saloon, since it has kept the styling that makes a Volvo a Volvo, such as the egg-box grill and those very severe body lines cut into the bonnet.

Yet as good as the exterior is, it's the interior where you feel Volvo has made the biggest strides. If you've driven an existing S40 (or any other current Volvo saloon for that matter) you'll know what a mess the dash can look, with row upon row of buttons on a huge numb-looking plasticky facia. Inside this new S40 it's a very different story.

The central console is now one piece of either wood or aluminum that has been gently curved at the bottom to meet the gearshift so there are no ugly seams or joins. The controls and switches have been tidied up, leaving just one small screen, four knobs and a handful of buttons that control the aircon, stereo, etc. It gives the interior a clean, easy-to-use look, but Volvo's designers didn't finish there.